If you’re preparing to lease an Alfa Romeo vehicle at Helfman Alfa Romeo, you want to make sure that all the details work for you. However, we’re well aware that all those details can get confusing. These are a few of the terms that are helpful for you to know.
Acquisition Fee
The money you pay to cover the administration costs of pulling your credit report, verifying your insurance coverage, etc.
Adjusted Capitalized Cost
Also known as a net cost, this is your vehicle’s total gross capitalized cost minus its capitalized cost reduction.
Capitalized Cost Reduction
This includes any money you pay upfront, including your trade-in value, that is applied to your lease.
Disposition Fee
This is the fee you pay to cover the cost of preparing and selling your vehicle at the end of your lease.
Excess Mileage Charge
You have to agree on a set mileage at the beginning of your lease and, if you exceed it, you will be charged a fee. This cost should also be outlined in your lease agreement.
Excessive Wear and Tear Fee
This is a fee you pay if your vehicle has more than normal wear and tear at the end of your lease.
Guaranteed Asset Protection (GAP Insurance)
This is optional coverage (that some lenders require) to cover the difference between what you owe on your vehicle and what it’s worth if you have a total loss.
Money Factor
Similar to an interest rate, this is a fee that you owe your lender and is illustrated as a decimal.
Residual Value
This is the projected value of your vehicle at the end of your lease.
We’re happy to walk you through the leasing process anytime. Contact our Alfa Romeo dealership serving Pearland, TX to get started today!
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